The market has exploded with several new cryptocurrencies in 2021, some of which are small tokens and some of which are MEME tokens. Some of these tokens are full of pitfalls. Have you purchased any?
A Few Small Tokens That Exploded in 2021
Shiba Inu Coin
Shiba Inu Coin is an ERC-20 token that was officially launched in August 2020. It is also a MEME coin, a digital pet asset because it mimics another cryptocurrency, Dogecoin, and the token's name comes from the Japanese dog breed Shiba Inu.
Shiba Inu coin didn't have much of a rise in the early stages of its release until Musk pushed it on Twitter in May 2021 and it exploded instantly. The rise reached 1,200% overnight, also making its market capitalization hundredfold, and also successfully became the fifteenth largest cryptocurrency. Even though the price of this token has fallen a lot, the current state is no longer a "small token" as it was before.
So far, the market cap of the Shiba Inu coin is $15.33 billion, and the team keeps burning tokens and making a series of moves and measures to make the price recover gradually.
SafeMoon
SafeMoon is a BEP-20 token issued in March 2021. It is a small token that exists on the Cryptocurrency Smartchain and its price has increased by 6,000% in the 2 months after its release, surpassing all other cryptocurrencies at that time.
Then after the surge, SafeMoon price fell and so far its price hasn't risen much. Some people have even questioned if SafeMoon is a scam for capitalists to come out and attract traffic. Because many people who invested early reaped a lot, and late investors lost.
SQUID
Speaking of explosions, this token has to be on the list: Squid Game Coin. It was released on November 1, 2021, and exploded with a Korean TV series called "Squid Game". Its issue price is still in one decimal place, but at one point during the drama's fire, it soared over 230,000% to $2,861.80 before crashing back down to zero.
Are Small Cryptocurrencies Still Worth Investing in 2022?
After witnessing the ups and downs of many small tokens, you will find that there are still many pitfalls. You can't easily invest just because of the explosion of the token, the risk behind far outweighs the price rise. However, you need to do a lot of research before investing in a small token and need to check which exchanges the token is supported by. A token that is listed on one of the world's leading digital currency exchanges such as Gate.io means that it has some upside potential.
Nevertheless, you should consider the risks and upsides before investing and buying it, and then make a prejudgment based on the rise of previous small cryptocurrencies.